ERROR #4: EXCESS OF INFORMATION.
The Economic Calendar is one of the most dangerous tools you can use when trading.
A very common error we are about to discuss today. We all have that feeling that there is something going on we are missing, the famous FOMO (fear of missing out) in trading hurts your account balance. Let me show you why.
But first, let me ask you a question. If you have a real account, then you have seen and agreed to this messages.
These risk warning messages are compulsory on every broker’s website. I could share any other broker, but these four are on the top of the ranking. It doesn´t sound like promising, does it?
We try to have a lot of information, trying to differentiate from the rest, from those 70% of retail traders who are losing their money. We want to have something that the rest don’t have, and, since it’s not posible to have more money in our accounts, we think it will be having “more information” what will make us winners.
WRONG!
I agree with that you need to have something that those 70% don’t have. I need to be smarter and don’t trade with them. But having more information won’t be the solution, and it wouldn’t be cheap. If you want to get real time news (those in the Economic Calendars are delayed) like Bloomberg Terminal, prepare your pockets to pay them around 1200$ per month. Even if you get it. Will you make money knowing the data realeased before the rest? Deffinitely NO. Last week we had a perfect example. We were trading NZDCHF, shared in our Telegram Channel last weeks. The RBNZ was expected to rise their Interest Rates 0.25 bps. I was somehow priced, and everyone was expecting that to be good for the NZD currency. The moment of the new arrived with surprise. The National Bank not only rose the rates 0.25 but 0.5! That’s a very positive surprise for NZD buyers.
As you can see, NZDCHF and the rest of NZD pairs fell after the decision. Now, you will hear a lot of excuses, buy the rumour sell the fact, the decision was priced in (also the surprise?), etc… You had a lot of information. You lost.
Why?
Your information was wrong. See what information we had. Let me share just two details. We had more.
A Weekly pivot which hadn’t been tested so far during the week.
1H Order Block whose median point was 0.6434 (We love trading OBs at 50%)
That was exactly the price where NZDCHF arrived and reversed. We didn’t need to check the news to predict what price may do at that level.
We are growing our accounts. We don’t trade like the rest, and we are very proud of doing so, because that way we can be in the right side of the market. The side of the profitable 30%. Don’t get me wrong. We study, hard, but our hardwork has results, and that is fair. Otherwise, we should have stopped trading long ago. To sumarize:
It is not the amount of information you have, but the quality of the information you can extract the chart, what will make you profitable as a trader.
Chus PFXC
Remember we are here to help, if you want our advise feel free to contact @Chusssss in Telegram and we will try to help you in your trading career.
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